Agriculture

Statistics for 2009 show that value added in current rupees of the agricultural sector, including sugar milling, increased by 1% from R 11.74 bn to R 11.86 bn in 2009.  It is to be noted that raw sugar prices have fallen considerably, and taking into account increase in tonnage, additional revenue from special and refined sugars, the C.S.O. has estimated that the real growth rate of the sector for 2009 was 13.7% compared to 1.5% in 2008.

Nevertheless, the share of the sector in GDP has decreased from 5% in 2008 to 4.8% in 2009.

In addition, according to the Continuous Multi-Purpose Household Survey, the share of employment of the Primary sector in total employment has dropped from 10% in 3rd quarter 2008 to 9.2% in 3rd quarter 2009.  The Survey of Employment and Earnings in large establishments indicates a loss of 930 jobs between March 2008 and March 2009.

Sugar

Value added in current rupees of sugar cane and sugar decreased by 9.2% from R 5.9 bn in 2008 to R 5.4 bn in 2009.  In real terms, the growth rate was 21.1%.  This group represented 45% of the Agricultural sector in 2009, compared to 50% in 2008.  The CSO estimates are based on a sugar production of 467,000 tonnes, compared to 452,000 tonnes in 2008.

The sugar sector has undergone severe stress, with price cuts amounting to 36% and its restructuring programme comprising VRS, centralization of factories, production of white sugar, diversification of activities, etc.  It has been able to weather the storm and has already embarked on projects relating to a Food Security Strategic Plan launched last year, and will most probably enhance its role in the sector of renewable energy.

Employment declined from 12,999 in March 2008 to 12,070 in March 2009.  The tonnage of sugar exported dropped by 20% from 427,000 tons in 2008 to 342,000 tons in 2009, and total receipts declined from R 8.3 bn to R 6.6 bn.